Suppose you observe a one-year futures price of $100, the futures option strike price of $90, and

Question:

Suppose you observe a one-year futures price of $100, the futures option of $90, and a 5 percent interest rate (annual compounding). If the futures option call price is quoted at $9.40, identify any arbitrage and explain how it would be captured? Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.